The Controller at TellCo Is Examining Her Books

question 61

Multiple Choice

The controller at TellCo is examining her books. She determines that at the breakeven point of 5,000 units, variable costs total $4,000 and fixed costs total $7,000. Therefore, 5,001st unit sold will contribute ________ to profits. (Round the final answer to the nearest cent.)

• A) $0.80
• B) $0.60
• C) $1.40
• D) $2.20

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